What Does Extended Service Agreement Mean
Cover your new Toyota with our highest level of service contract protection. Platinum protection offers the best protection tfs offer after your vehicle`s warranty expires, including parts not included in the Gold and Powertrain plans. For some vehicle owners, purchasing an extended service plan is a smart decision and offers security. In other cases, a protection plan may not be worth the cost. However, service contracts usually only cover problems related to electrical or mechanical parts, especially those that are not covered by the manufacturer`s warranty. While service contracts may cover the engine and transmission, they generally exclude routine maintenance such as oil changes and tire changes. However, some extended car warranties offer coverage similar to the manufacturer`s warranty. You are usually not required to purchase an automotive service contract when you buy a car. You usually don`t have to buy a service contract to get financing. If the merchant tells you that you must purchase a service contract to be eligible for financing, contact the lender to find out if this is the case. Some people have struggled to cancel their service contract after learning that the lender didn`t need it.
Carefully review potential service contracts to make sure you understand: Under the service contract, you may need to follow all of the manufacturer`s recommendations for routine maintenance, such as oil changes. If you don`t, the contract could become invalid. To prove that you have properly maintained the car, keep detailed records, including receipts. Check if the contract prohibits you from taking the car to an independent station for routine maintenance or from doing the work yourself. The contract may stipulate that the dealer who sold you the car is the only facility authorized for the maintenance of the car. More than likely, these presentations come from independent companies that want to sell you extended warranties – more specifically called service contracts – that are often sold for hundreds or thousands of dollars. If you`re answering a call from a company with so-called extended warranties, you`ll likely hear high-pressure sales tactics, as well as requests for personal financial information and a down payment, before you get details about the service contract. And when you buy a service contract, you may find that the company behind it hasn`t been in business long enough to meet its obligations. If you have a problem with an automotive service contract, first try to resolve the dispute with the supplier.
If that doesn`t work, contact your attorney general, the state insurance commission, or the local consumer protection agency. You can also file a complaint with the Federal Trade Commission. When looking for a reputable provider of an extended service plan, we recommend: As a general rule, the price of the service contract depends on the manufacturer of the vehicle, model, condition (new or used), coverage and duration of the contract. Initial costs can range from one to several thousand dollars. In addition, you may have to pay a deductible. Check if the deductible is calculated per visit or per repair. It can make a big difference. Let`s say you have a $100 deductible and your car needs to repair three parts.
With the deductible per visit, you pay $100. If you have a deductible per repair, you will pay $300. Keep in mind that service contracts are optional, even if you`re planning car financing. If a supplier indicates that the contract is required, ask them to show you where the requirement in the contract is; If it is not present, you do not have to buy it. If a local retailer or dealer offers the service contract, you may only be able to use the local service. .